1. INTRODUCTION
The Board of Directors of Propel Global Berhad (“Propel Global” or “the Group”) wishes to announce that its wholly-owned subsidiary, Propel CMT Sdn. Bhd. (“PCMT”), in joint venture with China State Construction Engineering (M) Sdn. Bhd. (“CSCEM”) (collectively, “the JV”), has on 15 October 2025 received and executed a Letter of Acceptance which was accepted on 16 October 2025 from a multinational company based in Singapore for an initial civil and structural works package for a data centre development located in Johor Bahru (“the Contract”).
2. DETAILS OF THE CONTRACT
The Contract, valued at approximately RM70 million, comprises a work package scheduled for completion in the first half of 2026. The Letter of Acceptance also includes provisions for potential subsequent phases (“Optional Works”), which are expected to be confirmed by the end of 2025. In the event that the Optional Works are granted or awarded, the total estimated value of the overall project would increase to approximately RM325 million.
This represents a strategic milestone in the Group’s expansion into the digital infrastructure sector.
3. RATIONALE FOR JOINT VENTURE
PCMT provides industrial facility management, builder works, plant upgrades and EPCC services. CSCEM is the Malaysian subsidiary of China State Construction Engineering Corporation, one of the world’s largest construction and infrastructure conglomerates, with extensive experience in data-centre design and delivery.
PCMT and CSCEM entered into a Joint Venture Agreement on 6 February 2025 to form an unincorporated joint venture (“JV”) for the purpose of tendering for and executing the Contract. Under the JV arrangement:
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PCMT holds a 51% participation interest and is responsible for overall management and administration of the JV; and
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CSCEM holds the remaining 49% interest, responsible primarily for project management and technical delivery.
This collaboration enables knowledge transfer, technical capability enhancement, and strengthens the Group’s position within the data centre and digital infrastructure market.
4. FINANCIAL IMPACT
The Contract is expected to contribute positively to the Group’s earnings and net assets for the financial year ending 30 June 2026.
The Contract will not have any effect on the issued share capital and shareholding structure of Propel Global.
5. RISK FACTORS
The Contract is subject to normal business and operational risks inherent in construction projects. However, the Group believes it has the necessary expertise, resources, and the technical support of its JV partner to mitigate such risks effectively.
6. DIRECTORS’ STATEMENT
The Board is of the opinion that this Contract represents a significant milestone for the Group’s strategic diversification into digital and renewable infrastructure, and that it is in the best interest of the Company.
7. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS
None of the Directors and/or major shareholders of Propel Global, nor persons connected to them, have any direct or indirect interest in the Contract.
This announcement is dated 16 October 2025.